Quality Integrity Report

　　Hangzhou Jinke Technology Co., Ltd.

　　March 2023

　　Table of Contents

　　Preface

　　General Manager's Statement

　　1. Company Profile

　　2. Quality Philosophy

　　3. Corporate Quality Management

　　(1) Quality Management Organization

　　(2) Quality Management System

　　(3) Quality and Safety Risk Management

　　4. Quality Integrity Management

　　(1) Quality Commitment

　　(2) Operational Management

　　(3) Marketing Management

　　5. Quality Management Foundation

　　(1) Standards Management

　　(2) Metrology Management

　　(3) Certification Management

　　(4) Inspection and Testing Management

　　6. Product Quality Responsibility

　　(1) Product Quality Level

　　(2) Product After-sales Responsibility

　　(3) Corporate Social Responsibility

　　(4) Quality Credit Record

　　Report Conclusion

　　Preface

　　This report is the first publicly released "Corporate Quality Integrity Report" by Hangzhou Jinke Technology Co., Ltd. (hereinafter referred to as "the Company"), prepared in accordance with the national standards of the People's Republic of China GB/T 29467-2012 "Implementation Specification for Corporate Quality Integrity Management" and GB/T 31870-2015 "Guidelines for Corporate Quality Credit Report Compilation", combined with the Company's 2022 quality integrity system construction status.

　　The Company guarantees that the information contained in this report does not contain any false records or misleading statements and is responsible for the authenticity and accuracy of its content.

　　Report Scope:

　　The organizational scope of this report is Hangzhou Jinke Technology Co., Ltd. This report describes the Company's philosophy, systems, measures taken, and performance achieved in quality management, product quality responsibility, quality integrity management, and other aspects from January 2022 to December 2022.

　　Report Release Format:

　　The Company publishes a quality credit report annually. This report is released to the public in PDF electronic document format on the Company's website (http://www.inkecnc.com/). You are welcome to download, read, and provide valuable feedback.

　　General Manager's Statement

　　To ensure responsibility to customers and scientific, fair, and effective inspection and testing, and to independently and objectively evaluate testing quality with true and reliable data, the Company’s responsible person declares as follows:

　　(1) Strictly comply with national laws, regulations, and policies related to quality, adhere to a scientific and fair stance, strictly implement standards, and bear legal responsibility for the data issued.

　　(2) The Company has established and implemented a quality management system according to GB/T19001-2016/ISO9001:2015. All quality activities strictly follow the procedures and methods specified in the "Quality Manual," implementing full-process and full-element control over testing work quality to ensure the accuracy and reliability of test results.

　　(3) Independently conduct testing work, with highly qualified testing personnel and other hardware resources, capable of providing "scientific, fair, accurate, and efficient" testing technology. Testing work is free from administrative, commercial, financial, or any other interference. It is not influenced by economic interests, ensuring independence and honesty of testing at all times.

　　(4) Strictly abide by confidentiality principles and related regulations, and be responsible for the authenticity of inspection data.

　　(5) Strictly responsible to customers, rigorously implement internal standards, and ensure product quality.

　　1. Company Profile

　　Hangzhou Jinke Technology Co., Ltd. is an integrated company of research and development, production, and sales, covering an area of more than 30 acres. It is a professional CNC engraving and milling machine manufacturer in western Zhejiang. Since its establishment, the company has focused on advanced European technology in the global CNC industry. Through technical cooperation with professional manufacturers from Japan, France, Spain, Taiwan, and others, and relying on a high-level, experienced, and responsible R&D team, it has made breakthrough developments in precision CNC engraving and milling machine design and production, mechanical processing, mold manufacturing engraving technology, as well as CAD/CAE/CAM research and development. The products are designed, manufactured, and inspected strictly according to relevant international, national, and corporate standards, with a strong emphasis on assembly technology. Over the years, product quality has been stable and performance continuously improved. With excellent cost performance and comprehensive after-sales service, the market share has steadily expanded, successfully realizing the transformation from CNC technology to industrialization.

　　As one of the outstanding representatives in the CNC engraving and milling machine industry, Hangzhou Jinke Technology Co., Ltd. has always maintained a vigorous, united, and enterprising posture. With strong technical strength and rigorous scientific management, the company continues to grow and innovate, winning multiple honors such as "Zhejiang Quality Trusted Product" and "Top Ten Recognized Brands of CNC Engraving and Milling Machines in China," maintaining its leading technological advantage. Currently, the company produces the Jinke (JKM) series with dozens of models of large CNC engraving and milling machines. Advanced manufacturing processes, large-scale production, high-quality products, professional user training, and timely after-sales service firmly establish the company's position in the industry. The products are sold nationwide and widely used in machinery, research institutes, universities, chemical industry, advertising, woodworking, stone processing, automotive industry, injection molds, hardware molds, engraving molds, and other industries. The company has established an after-sales service system that promptly handles returns, exchanges, and effective repairs based on customer situations, minimizing customer losses and earning widespread praise.

　　To adapt to market development, the company has established multiple branches nationwide, specializing in sales, after-sales service, and technical support. To enable customers to start production immediately after purchase, the company has set up a training department where professional instructors provide free professional training to customers' technical staff and offer long-term technical consultation and services for processing programming, ensuring users fully utilize the company's products. In addition, to address the shortage of professional CNC operators, the company is planning joint training and employment recommendation programs with related schools, aiming to quickly cultivate relevant professionals.

　　2. Quality Philosophy

　　At the company's inception, it was committed to creating high-quality products, regarding product quality as a crucial cornerstone for the survival and development of the enterprise. The company has successively passed ISO9001, ISO14001, and ISO45001:2018 management system certifications, as well as quality management system and service certifications, strictly implementing these international quality management systems to strongly guarantee product quality, thereby smoothly promoting the company's quality policy. To fundamentally strengthen quality management and improve operational quality, the company took the introduction of the excellence performance model as an opportunity to implement total quality management, using various quality statistical tools, through internal audits, self-assessments, third-party audits or evaluations, and QCC quality control circle activities, continuously seeking improvement opportunities and ways for continuous improvement, moving towards excellent performance. Since its establishment, the company has never had major quality complaints, and in annual spot checks by quality supervision departments at all levels, the pass rate has always been 100%.

　　Organizational Culture

　　Jinke, based on industry characteristics and over eight years of accumulation and development, has established a value system with corporate characteristics:

　　Mission: To build a stage for employees and create wealth for society

　　Jinke actively assumes social responsibility, alleviating social employment pressure by providing a platform for employees to realize value through sustainable development, creating more profit for society.

　　Vision: To become the leader in the machining center industry

　　It has set the grand vision of "becoming the leader in the machining center industry," contributing to the realization of the Chinese Dream and dedicating a modest effort. This is also the shared dream of all Jinke people; only with a common dream can we go further together!

　　Core Values: Integrity, Inclusiveness, Passion, Respect

　　Integrity: Loyal to the enterprise, faithful to society

　　Inclusiveness: Embracing all rivers, gathering strength for win-win

　　Passion: Determined to forge ahead, pursuing excellence

　　Respect: People-oriented, inspiring potential

　　Table 2 Company's Quality Objectives

Company-level Quality Objectives
1) Product factory pass rate 100%; (product factory inspection); 2) Product first-pass acceptance rate ≥92%; (production quantity - nonconforming products); 3) Customer satisfaction ≥95%
Department Number	Department	Objective
03	Sales Department	① Order fulfillment rate ≥99%; ② Customer feedback handling rate 100%; ③ Customer satisfaction ≥90%
04	Corporate Management Department	① Training plan completion rate ≥95%; ② Document control rate 100%; ③ Employee turnover rate with over 1 year seniority ≤20%
06	R&D Department	① R&D plan completion rate ≥90%; ② Technical document completeness rate ≥99%
07	Equipment Department	① Operating equipment integrity rate ≥98%; ② Equipment maintenance timeliness rate ≥99%; ③ Main equipment integrity rate ≥99%
08	Quality Control Department	① Inspection accuracy rate ≥99%; ② Customer complaint rate ≤3%; ③ Testing timeliness rate ≥99%
09	Production Department	① Product finished goods rate ≥85%; ② Product first-pass qualification rate ≥92%; ③ Order completion rate ≥99%; ④ Inventory product integrity rate ≥99%

 

　　

　　3. Corporate Quality Management

　　(1) Quality Management Organization

　　With a high emphasis on product quality, the company has established a quality responsibility system, formulated inspection standards for various materials, components, and products, with each department performing its duties and communicating and cooperating, strengthening product quality control throughout processes such as R&D, procurement, and production.

　　General Manager and Senior Management Team — responsible for allocating total quality management resources, raising awareness among all employees, and promoting the quality concept to all staff;

　　Office — responsible for the company's business strategic planning and overall operation management, handling external administrative affairs; responsible for establishing, monitoring, and improving the company's internal comprehensive management system, formulating and organizing the implementation of the company's human resources strategic plan, responsible for personnel management, administrative management, logistics management, and continuously improving the company's overall quality management level; responsible for the company's informatization construction, training, guidance, implementation, and maintenance, upkeep, and troubleshooting of information systems;

　　Production Department — responsible for planning the product realization process, formulating and supervising production plans, managing overall production operations, and comprehensively controlling production delivery, cost, quality, technology, engineering equipment, and safety; responsible for product technology R&D and application, coordinating new product development (including from product feasibility analysis to technical transfer and support after successful mass production), managing project teams daily; responsible for testing new materials and new products, and internal entrusted testing;

　　Sales Department — responsible for price approval of company material procurement and product sales pricing, as well as supplier development, evaluation, and management; responsible for procurement management of materials and equipment required by the company and the operation management of material receipt, issuance, and storage, ensuring the quality of externally purchased and outsourced parts at the source;

　　Quality Control Department — responsible for promoting and implementing the company's quality strategy, preparing quality plans, improving product and process quality indicators, and implementing quality improvement work;

　　Sales Department — responsible for formulating sales plans and strategies, following up and improving sales tasks, managing the sales team, collecting market information, and communication and coordination between customers and the factory; responsible for formulating product market plans and strategies, following up and improving product market expansion, managing the product market team, early design, development, and research of new products, new product introduction; participating in project bidding; implementing after-sales service, etc.;

　　Finance Department — responsible for the company's financial management, participating in the company's strategic planning, investment and financing, and internal control system construction;

　　The company has also established the Chief Quality Officer position, defining the responsibilities and authority of the CQO, implementing a one-vote veto system for quality, and fully establishing the company's quality culture.

　　Due to the emphasis on product and service quality and safety, the company's General Manager fulfills the following responsibilities:

　　1) Participating in the formulation and review of quality strategy to determine the quality strategy;

　　2) Participating in monthly quality meetings;

　　3) Participating in major product quality reviews and quality improvement activities;

　　4) Participating in quality recognition activities and awarding QCC activities;

　　5) Participating in quality month activities and promoting quality and safety education;

　　6) Establishing the Chief Quality Officer system and clarifying the CQO's authority;

　　7) Establishing a clear quality incident accountability system and quality safety traceability system.

　　(2) Quality Management System

　　Since the company introduced the quality management system, it has adhered to the quality policy of "pursuing perfection, striving for excellence, and daring to compete with world-class standards." The company has established a quality management system in accordance with the requirements of the quality management system, forming a quality manual, procedure documents, and other quality documents, which are implemented, maintained, and continuously improved for effectiveness.

　　1. Quality Management System Policy and Objectives

　　The company's quality policy is: pursue perfection, strive for excellence, dare to compete with world-class standards, and build Jinke Technology into a leader in the Zhejiang Province machining center industry.

　　The company's quality objectives are:

　　Genuine product rate ≥ 98%, customer satisfaction ≥ 90%, with efforts to improve year by year.

　　Figure 2 Schematic Diagram of Company Management System Operation Process

　　To achieve the company's quality and safety responsibility goals, the company has established and improved the quality and safety leadership organization, forming a Product Quality and Safety Leadership Committee chaired by the general manager. Each center and functional department has set up subcommittees responsible for supervising and assessing product quality and safety work.

　　The company has established an integrated total quality management system centered on strategy and framed by the GB/T19580 Excellence Performance Model, meeting the requirements of six major stakeholders: customers, shareholders, employees, suppliers, society, and partners. Corresponding strategic planning and quality objectives have been established at all company levels, supported by the company performance assessment system, with quality assessment KPIs and quality accountability systems set up.

　　2. Quality Education

　　During the system operation, the company uses various scientific and effective methods to measure, analyze, and improve, based on the PDCA system approach, continuously improving. The company uses multiple tools to improve the performance of departments and levels, adopting benchmarking and learning methods to continuously adjust individual work ideas and methods, ensuring the achievement of personal and overall company goals. The company actively communicates externally and invites experts to provide specialized training to employees as appropriate. Regular quality education is conducted for employees at all levels, with special management of quality control points to ensure consistency in product quality during manufacturing.

　　To firmly establish the integrity awareness of all employees, the company formulates an annual quality integrity education and training plan at the beginning of each year, implementing a three-level quality integrity education and training. Department heads prepare education and training plans and content according to company requirements and organize training for their subordinates. Workshop supervisors are responsible for integrity publicity and education for team leaders and employees. The company implements quality integrity education through special training, posting or communicating written materials, sharing experiences of advanced employees in quality integrity, using morning meetings or pre-shift meetings, and displaying pictures. Employees who perform excellently in quality integrity education and training receive certain rewards, and their experiences are promoted among employees. Employees who do not attend quality integrity education training on time or fail the training assessment are subject to certain penalties.

　　3. Quality Laws, Regulations, and Responsibility System

　　The company collects laws, regulations, and other standards and requirements to formulate internal related standards, ensuring products meet national laws, regulations, and national and industry standards (some product indicators exceed external requirements), fulfilling social responsibility from a product technology perspective. Meanwhile, the company has formulated the "Quality Reward and Punishment Management Standard" and "Quality Assessment Management Measures" to impose responsibilities and penalties for product quality issues, adhering to the principle of not overlooking quality incidents.

　　Table 3 Quality Standards and Other Related Laws Complied with by the Company

Category	Content Company Normative Governance
Company Normative Governance	"Company Law", " 06 New Accounting Standards", "Financial Regulations", "Contract Law", "Product Quality Law", "08 New Enterprise Income Tax Law", etc.
Protection of Employee Rights and Social Responsibility	"Labor Law", "Trade Union Law", "Consumer Rights Protection Law", "Environmental Protection Law", "Work Safety Law", "Occupational Disease Prevention Law", ISO14000 Standards.
Implementation and Formulation of Product Standards	GB/T 9061—2006 Metal Cutting Machine Tools General Technical Conditions 、 JB/T 8801—2017 Machining Center Technical Conditions, T/ZZB 0467—2018 Vertical Machining Center

　　The company has formulated the "Internal Audit Management Procedure" and "Management Review Control Procedure," and cultivated an internal auditor team. To ensure the effectiveness and continuous improvement of the system operation, internal audits, process audits, product audits, and quality inspections are arranged. For nonconformities found during audits, the responsible department analyzes the causes, formulates corrective or preventive measures, implements rectification, verifies the effectiveness of the rectification, and finally produces an internal audit report. Suggestions for system rectification and prevention of nonconformities are made and serve as an important input for management review, reported to top management.

　　The company has formulated the "Nonconforming Product Control Procedure," "Corrective or Preventive Measures Management Procedure," and "Inspection Regulations" to strictly control nonconforming products. All products undergo online inspection, and only qualified products proceed to the next process or shipment. Any nonconforming products have clear identification, records, isolation, and handling requirements. Reworked or repaired nonconforming products must be re-inspected and qualified before entering the next process.

　　Additionally, according to the "Product Monitoring and Measurement Control Procedure," all nonconformities are recorded in detail and analyzed statistically by designated personnel. The responsible unit formulates corrective and preventive measures based on the "Corrective or Preventive Measures Management Procedure" and carries out rectification. Only after evaluating the effectiveness of these measures can the issue be closed.

　　Furthermore, the company has established the "Quality Manual," "Supplier Control Procedure," "Employee Training Management Measures," and other systems to hold accountable for quality issues, educate employees, and emphasize systematization in daily R&D and production operations. Through quality circles, continuous improvement activities, and quality tools, the PDCA cycle is fully applied to continuously improve and pursue excellence.

　　(3) Quality and Safety Risk Management

　　To achieve the company's quality and safety responsibility goals, the company has established and improved the quality and safety leadership organization, forming a Product Quality and Safety Leadership Committee chaired by the general manager, responsible for supervising and assessing product quality and safety work. In 2021, the "Chief Quality Officer (CQO)" system was established, clarifying the CQO's responsibilities and rights, fully exercising the quality and safety "veto power." The Quality Control Department signs the "Product Quality and Safety Responsibility Letter" with each branch factory and department, which is further implemented at each position and assessed.

　　Through the annual "Quality Month" activity in September, quality and safety knowledge is promoted to strengthen employees' quality and safety awareness. Through audits of quality, environment, and occupational health and safety systems, quality and safety hazards are promptly identified and eliminated.

　　In the design, production, and assembly processes, the following main measures are taken to ensure quality and safety:

　　Ø The design department conducts FEMA analysis and error-proofing design for new products;

　　Ø The quality control department strictly implements the "four inspections" system: first inspection, patrol inspection, final inspection, and monitoring inspection;

　　Ø The process department conducts monthly process discipline inspections for key processes;

　　Ø The production department implements a manager responsibility system, tracking and supervising the entire production process;

　　Ø Establish the concept that "quality is produced," where employees inspect the products they produce according to process requirements, make judgments on whether they are qualified, and record relevant self-inspection details on the "Self-Inspection Form";

　　Ø The unitized modular production model exposes and controls key quality stages of the product, thereby ensuring product quality safety and preventing quality safety risks.

　　The company has formulated a quality safety emergency plan and established an emergency leadership team led by the general manager, with the quality authorized person and executive vice president as deputy leaders, and members from the Quality Control Department, Purchasing Department, Production Department, Sales Department, and Finance Department. The responsibilities of the emergency leadership team and related departments are clearly defined.

　　Table 4 Quality Safety Emergency Plan

Project		Content
Detection System		Personnel from the Quality Control Department, Production Department, and material preparation staff are responsible for detecting and reporting product quality issues during production; Purchasing Department personnel are responsible for detecting and reporting product quality incidents during raw material storage, finished product storage, and loading/unloading circulation processes;
Early Warning System		The Quality Control Department, Production Department, and Purchasing Department strengthen detection and analysis of quality incidents according to their responsibilities, enhance quality and hazard awareness, promptly analyze the feasibility of product use and emerging problem trends, issue timely warnings, and ensure the effective operation of the production system.
Emergency Response	Major	( 1) The Quality Control Department organizes relevant departments to analyze the cause of the problem and formulates corresponding emergency response measures based on the impact of the incident, including product handling, eliminating impact, reducing losses, etc.; ( 2) Each department is responsible for quickly organizing related work according to the emergency measures requirements; ( 3) The Quality Control Department is responsible for inspecting the implementation of emergency measures.
	Significant	( 1) After a significant quality incident occurs, the Quality Control Department is responsible for promptly notifying relevant personnel to control the problematic products, and the Purchasing Department is responsible for isolating and labeling the same batch or potentially problematic products to prevent further circulation or shipment. ( 2) The Quality Control Department organizes relevant departments to analyze the cause, the R&D and Production Department provides technical support and offers handling suggestions; ( 3) The Corporate Management Department and Sales Department are responsible for verifying the effectiveness of the measures.
	General	( 1) The Corporate Management Department and Sales Department are responsible for promptly reporting issues to the Production Department; ( 2) The Production Department analyzes the cause of the problem, formulates corresponding improvement measures, and implements them specifically; ( 3) The Corporate Management/Sales Department verifies the effectiveness of the rectification based on the situation.
	Potential	(1) Following the principle of prevention first, potential quality incidents must be highly valued. Once a potential incident occurs, the Quality Control Department and Assistant to the General Manager must be promptly notified. The Quality Control Department and Corporate Management Department organize relevant personnel to assess the impact and harm of the potential quality issue; ( 2) Based on the results, formulate corresponding remedial and preventive measures to avoid quality accidents and reduce losses; (3) The Quality Control Department is responsible for verifying the effectiveness of preventive measures. If necessary, products need to be supplied from designated points, and if problems arise, timely and effective control of spread is ensured.
Emergency Handling		Product handling is the responsibility of the department where the problem occurs. After the problem arises, the product must be quickly isolated and correctly labeled. Before the final disposal order is issued, no one is allowed to arbitrarily handle the product; for products that need to be recalled, the Quality Control Department is responsible for recalling them, and after recall, timely isolation and labeling are required.

 

　　4. Quality Integrity Management

　　(1) Quality Commitment

　　1. Laws, regulations, and standards related to the enterprise or product clearly specify the requirements the enterprise must comply with.

　　During operation, the company should operate in accordance with laws such as the "Company Law," "Accounting Law," "Contract Law," "Product Quality Law," "Accounting Standards," and "Enterprise Income Tax Law," implementing standardized governance. It also protects employee rights and social responsibilities based on the "Labor Law," "Trade Union Law," "Consumer Rights Protection Law," "Environmental Protection Law," "Work Safety Law," "Occupational Disease Prevention Law," ISO14001 standards, etc.

　　Products must comply with national standards GB/T 9061—2006 Metal Cutting Machine Tools General Technical Conditions, JB/T 8801—2017 Machining Center Technical Conditions, T/ZZB 0467—2018 Vertical Machining Center, etc.

　　2. Integrity and Law Compliance

　　Senior management follows the management philosophy of "lawful operation and honest operation," strictly adhering to laws such as the "Company Law," "Economic Law," "Contract Law," "Product Quality Law," "Work Safety Law," "Environmental Protection Law," "Labor Law," and relevant laws and regulations in the machinery industry. They strengthen employee legal knowledge training, cooperate with government departments to carry out legal education activities, encourage and commend employees' "positive energy," and deeply instill the style of integrity and law compliance into the awareness and behavior of all employees. The company has a zero rate of proactive contract breaches, never delays bank loans, reduces overdue accounts receivable to a reasonable range, and neither senior nor middle management has records of violations or misconduct. Employee violations are zero, establishing a good credit and ethical image among customers, users, the public, and society.

　　2. Meeting Customer Needs

　　The company attaches great importance to technological research and development, strengthens investment in R&D, centers on customer needs, actively listens to customer opinions and suggestions regarding functions, quality, configuration, etc., and carries out product improvement and innovation activities to meet customer demands for products and delivery times. Regarding product quality, the company strictly implements the quality management system, ensuring product quality safety through technical breakthroughs, quality improvements, QC groups, and other activities.

　　(2) Operational Management

　　The company identifies integrity factors throughout the management process, establishes evaluation forms, and formulates control measures.

　　Table 5 Integrity Factor Analysis and Control Measures Table

Serial Number	Process Name	Factor Category	Integrity Factor Analysis	Dishonest Performance	Dishonest Consequences	Control Measures	Dishonesty Risk Evaluation and Analysis		Is it a Major Dishonesty Factor
							Possibility	General
1	Design and Development Planning (Project Approval, Project Planning, Design and Development Input)	Personnel Structure	Practitioners need to maintain confidentiality	Leakage of formulas and other core secrets	Company secrets leakage	Practitioners sign confidentiality agreements	Very few	General	No
			Practitioners need to be honest and trustworthy	Conceal personal and work situations	Insufficient personnel integrity	Practitioners sign agreements	Very few	General	No
			Whether there is market research capability	Distorted research information	Incorrect design and planning	Training	Very few	General	No
			The determined project leader lacks strong professional quality	R&D progress is not smooth	Project progress is slow and quality is poor	Training and assessment	Very few	General	No
		Environment and facilities	Whether equipped with various professional equipment	Unclear whether equipped with various professional equipment (the company may decide to use less suitable equipment for project trials at the start)	Product R&D cannot proceed smoothly	Establish equipment management files	Very few	General	No
			Company lacks an atmosphere of integrity	Work situation reports are not truthful	Poor practitioner integrity	Build an honest corporate culture	Very few	General	No
		System implementation	Whether relevant national standards are absorbed in a timely manner	Failure to timely understand and use newly issued national standards	Use of non-compliant raw materials or improper additive amounts, resulting in unqualified products	Timely acquisition and updating of relevant laws, regulations, and national standards	Impossible	Severe	No
			Whether selected raw materials comply with national laws and standards	Non-compliance with national laws and standards	Use of non-compliant raw materials	Timely acquisition and updating of relevant laws, regulations, and national standards	Impossible	Severe	No
			Relevant regulations for product development	Failure to work according to regulations	Project cannot be completed on time with guaranteed quality and quantity	Training and assessment	Very few	General	No

 

　　1. Product design integrity management

　　The company's product design and R&D strictly follow the "Design and Development Control Procedures," covering the entire process from R&D project initiation, various activity records, R&D process summaries, to management evaluation and control.

　　2. Integrity management of raw materials or component procurement

　　The company classifies materials into categories A, B, and C based on their risk to product quality. For category A suppliers, in addition to legal qualifications, regular on-site audits are required. For category B suppliers, risk analysis is conducted first, and on-site audits depend on the quality of supplied materials. For category C suppliers, generally only qualification audits are considered. After qualification and on-site audits, suppliers meeting requirements are recorded in quality files. All purchased raw materials undergo full inspection; those not meeting standards are not stored or used.

　　Regarding equipment and component procurement, suppliers' qualifications are strictly reviewed. Standard parts are purchased and used whenever possible; special processing requires thorough verification to meet company requirements. All equipment must be validated before use to ensure compliance with product process requirements.

　　3. Integrity management of the production process

　　The production and R&D production departments are responsible for production and technical management of various products. Various production management systems, work standards, job operation procedures, process regulations, management regulations, and standard operating procedures have been established and improved. Comprehensive job skill training is provided through centralized workshops and pre/post-shift meetings; employees must be certified and undergo supervision and assessment to enhance quality awareness and operational skills. Management personnel strictly fulfill their duties, promptly inspect and correct errors to ensure stable production order.

　　Raw materials, auxiliaries, and packaging materials are reviewed before use. Quality of intermediate and finished products is strictly controlled. The "three no's principle" of "no production, no acceptance, no circulation" applies to non-conforming products. Quality control points are set at key processes; employees are urged to perform self-inspection and mutual inspection, follow monitoring and verification procedures, and strictly manage batch records to unify issuance, distribution, and verification. Material balance is maintained at each production step to ensure input and output quantities meet planned requirements, confirming no potential quality risks.

　　Production records are reviewed, printed, and kept by the production department. Employees must fill in production records timely with clear handwriting, truthful content, and complete data, signed by operators and reviewers. After each batch, workshop statisticians compile and review records, submit them to the production department, and after verification, organize and archive them by batch number under dedicated management.

　　The company enhances informatization of the production process based on industry characteristics and actual conditions, using the ERP system's production management module for data collection and monitoring. Systematic management of the entire production process is implemented, internal potential is tapped, and technical backbone personnel lead continuous equipment upgrades or technological innovations. A technical task force addresses weak points. Production staff undergo training and assessment before starting work, with full training records established. Training methods include centralized training, pre-shift meetings, mentoring, and visualization to strengthen skills and quality awareness. Production staff strictly observe workshop discipline.

　　The company implements a refined production organization model to shorten production and delivery cycles, quickly adapt to fluctuations in market order types and quantities, reduce inventory while meeting customer needs, enhance customer understanding of pneumatic brake system performance, and further recognition of product quality. Order rates have increased, after-sales quality issues have been largely resolved, reducing after-sales staff workload and making after-sales service arrangements more flexible.

　　(3) Marketing Management

　　According to strategic requirements, the company segments the market to improve the effectiveness and targeting of resources and operations. The company divides customers into two categories: direct customers and indirect customers. For different types of customers, the company identifies their needs and expectations, determines appropriate methods based on these needs and expectations, establishes corresponding systems and teams, and creates various channels and methods to specifically understand customer needs and expectations.

　　Table 6 Methods for Understanding Key Customer Needs and Expectations

Understanding Method		Target of Understanding	Purpose and Content	Frequency	Department
Market Market Visit Visit	Pre-sales Service	Customer	Understand market information and demand situation	Irregular	Sales Department
	During-sales Service	Customer	Meet customer needs and ensure all product indicators
	After-sales Service	Customer	Product, quality, price, service methods;
	Company Senior Management	Key Major Customers	Communication, coordination of services, business guidance, market research (price, product, quality, service)	Regular	Sales Department
	Marketing Personnel	All new and old customers	Capture market price, product, regional market industry characteristics, economic conditions, and other information.	Monthly visits
Hold meetings	Exhibitions	All new and old customers	Solicit opinions on price, product, quality, service, etc.	Irregular	Sales Department
Telephone inquiries		Direct customers, indirect customers	Packaging, transportation, quality, price, service.	Anytime	Sales Department
Customer Complaints		Customer	Service, packaging, damage, quality, delivery time.	Timely	Sales Department
Understand customer and competitor information through direct customers and related parties		Company's direct customers, competitors' direct customers.	Opinions and requirements on quality, price, service, brand, and other aspects.	Irregular	Company Leadership

 

　　Table 6 Methods for Understanding Key Customer Needs and Expectations

　　The company understands customer needs and expectations through exhibitions, industry conferences, industry standard committees, public media, the internet, external agencies, and other channels, using questionnaires, face-to-face or telephone interviews, observation and inquiry, and external commissions.

　　Needs, expectations, and differences of different key customers are shown in Table 7

　　Table 7 Customer Needs Identification Table

Customer Type	Needs
Key Distributors	Brand awareness, product quality, capability for large and timely supply, after-sales service capability, exclusivity in regional supply, preferential policies;
General Distributors	Product quality, capability for timely supply, after-sales service capability, relatively preferential policies;
Key Customers	Brand awareness, product quality, capability for large and timely supply, after-sales service capability, preferential policies
General Customers	Product quality, capability for timely supply, after-sales service capability, relatively preferential policies;

　　 All company departments regularly collect customer information, analyze it, and classify and summarize customer demand information according to different market segments, forming a database of needs and expectations for different customer groups. From this, summary data on the overall demand characteristics of customer groups in different market segments is derived for reference in product planning, product development and design, process control, and other decision-making.

　　The company establishes the service tenet of "professional, enthusiastic, attentive, and timely." Through publicity and training, all levels of personnel understand and adhere to this service tenet.

　　The company advocates the corporate spirit of "integrity, pragmatism, efficiency, and innovation," backed by technological development and seeking growth through the best service. Our service tenet is "professional, enthusiastic, attentive, and timely," and our service principles are "customer first, service foremost, high-quality service, and timely response." The quality and timeliness of our service affect the company's good image in customers' minds and the company's future development. Therefore, we aim to provide customers with value-added products and services to enhance customer recognition of the company and improve the company's reputation and brand awareness among customers.

　　5. Quality Management Foundation

　　(1) Standards Management

　　The company integrates enterprise standardization throughout the entire production process, establishing relevant standards for all stages including procurement of raw and auxiliary materials, packaging materials, semi-finished products, and finished product inspection. This ensures that the entire production process from raw material intake to finished product output is managed under standardized regulations, laying a solid foundation for stabilizing product quality and improving enterprise management level.

　　Company Quality Management System Document Structure

　　(2) Metrology Management

　　The company strictly implements the "Metrology Law of the People's Republic of China" and other regulations, establishing a complete set of management documents and control methods covering raw material procurement, process management, production equipment, inspection equipment, process inspection, and finished product inspection. Dedicated and part-time metrology personnel are responsible for managing, equipping, and regularly calibrating the company's metrology equipment. Emphasis is placed on professional training for metrology management personnel, providing strong support for the standardization of the company's metrology management.

　　To ensure product quality, strict process control is applied in the production process, with enhanced metrology management of raw and auxiliary materials during production to ensure the normal operation of metrology equipment and the accuracy of measurements.

　　The company strictly follows the approval plan and management procedures for the procurement, warehousing, and outbound of measuring instruments. The warehouse has dedicated personnel to manage the measuring instruments, establish ledgers and registration procedures. The issuance and outbound of measuring instruments must pass calibration, and only those with a calibration certificate can be put into use; in-use measuring instruments are strictly calibrated periodically, with strengthened on-site inspection and supervision to monitor their usage. Problems are promptly addressed; departments with issues are given rectification suggestions and take active and effective measures to rectify, laying a solid metrological foundation for producing high-quality products.

　　(3) Certification Management

　　The company has successfully passed and obtained ISO9001 Quality Management System certification, ISO14001 Environmental Management System certification, and ISO45001 Occupational Health and Safety Management System certification. It is preparing to carry out the "Zhejiang Manufacturing" brand certification. The company will strictly implement the international quality management system to strongly guarantee the quality of its products, thereby smoothly promoting the quality policy of "pursuing perfection, striving for excellence, and daring to compete with world-class standards." Since its establishment, the company has never had major quality complaints, and the pass rate has been 100% in annual spot checks by quality and production departments at all levels.

 

 

Environmental Management System Certificate Occupational Health and Safety Management System Certificate Quality Management System Certificate

　　(4) Inspection and Testing Management

　　The Technical Center possesses various testing and analysis instruments and equipment, with over 4 million yuan invested in R&D funds and fixed assets of equipment valued at over 2 million yuan. The center has 400㎡ of R&D analysis and testing facilities. It is equipped with advanced testing equipment. Meanwhile, some new products are jointly developed with innovative partners to ensure R&D needs.

　　The company ensures that materials supplied by vendors meet specified requirements through inspection and testing of incoming goods. The Quality Control Department is responsible for preparing incoming inspection and testing procedures and for sampling inspections of incoming materials; the Purchasing Department handles non-conforming materials, and the Materials Warehouse is responsible for checking the quantity, name, and weight of incoming materials.

　　To ensure that all products pass the prescribed inspections before proceeding to the next process, the company has formulated the "Nonconforming Product Control Procedure," "Shipment Inspection Control Procedure," and "Final Inspection Control Procedure" to carry out strict process inspections and tests. The Quality Control Department is responsible for formulating process and final inspection and testing procedures, setting final inspection points, and organizing process inspections; quality inspectors are responsible for inspection points, semi-finished, and finished product inspections; operators in each production workshop are responsible for self-inspection.

　　6. Product Quality Responsibility

　　(1) Product Quality Level

　　1. Quality Level

　　The company continuously strengthens its "precision, specialization, and innovation" R&D team, continuously improving product technology levels and quality performance. In the past three years, products have been repeatedly recognized by customers and peers.

　　2. Product and Service Innovation

　　The company adheres to a specialized product route and enjoys a high reputation among peers. Key quality control indicators of main products are strictly controlled to ensure product safety and reliability, while product quality levels continue to improve and stabilize, as shown in Chart 11.

Chart 8 Main Product Quality Level

Main Technical Indicators	Enterprise Level	Industry Standard JB/T 8801	Remarks
Main Bearing Temperature Rise	21	20	Improvement
Angular Deviation of Linear Motion	0.035	0.060/1000	Improvement
Positioning Accuracy	0.001	0.020	Improvement
Working Accuracy	0.002	0.035	Improvement

Table 9 Company Patent List (Partial)

　　(2) Product After-sales Responsibility

　　1. Strengthening Customer Relationship Management through Multiple Channels

　　The company strengthens customer relationship management through multiple channels and enhances after-sales management:

　　(1) By establishing extensive customer relationships, providing multi-channel and comprehensive feedback channels, quickly handling customer information, and continuously improving service quality. Maintaining customer relationships is not only the work of the after-sales service department but a process involving all employees. The company adheres to the service concept of "immediate feedback" and ensures customer satisfaction through comprehensive services across various channels.

　　(2) Once a customer establishes a cooperation intention with the company, the company maintains communication from product R&D, realization, monitoring, to service, establishing comprehensive collaborative relationships. All resources can be mobilized to serve customers. In recent years, the company has been committed to transforming from a traditional manufacturing enterprise to a comprehensive service provider, market- and customer-oriented, continuously meeting customer needs.

　　(3) Different pricing strategies and profit models are implemented for different products. For mass-produced IXPE clothing with high homogeneity, the company strives for scale and service advantages; for unique products with core competitiveness and no competitors (e.g., combed wool sweaters), higher pricing is applied; for differentiated specialty products (e.g., military clothing), a win-win profit model with customers is realized.

　　(4) The company has established several channels to convey information to customers, mainly including:

　　u Professional customer service personnel collect information via telephone, fax, email, QQ, and WeChat;

　　u Commissioning third-party surveys to provide feedback;

　　u Free call center telephone information transmission;

　　u Establishing a WeChat public platform to transmit information;

　　u Various inquiry and feedback channels to gather opinions, suggestions, and complaints.

　　(5) Customer information collected through various channels is summarized by the sales department and quickly transmitted within the company. All customer information is recorded as important data. Issues and defects reported are promptly communicated to relevant departments for improvement. Sales and service personnel act as customer representatives within the company, supervising the completion of complaint handling by departments and assessing the responsible department heads.

　　2. Complaint Handling

　　The after-sales service department is responsible for managing customer complaints. Upon receiving a complaint, the issue is identified and verified within 2 hours. On one hand, a problem handling plan (including returns, replacements, etc.) is formulated and implemented within 24 hours after customer confirmation. On the other hand, internal relevant personnel develop and implement a rectification plan for the issue. The internal rectification plan and results are fed back to the customer as needed to obtain confirmation.

　　Internal rectification includes both company internal corrections and those of related parties. For related parties' rectifications, the Quality Control Department issues "Corrective and Preventive Measures," which the Purchasing Department forwards to relevant parties and supervises implementation. The Quality Control Department ultimately organizes verification of the rectification effectiveness.

　　At the same time, to ensure the effective use of customer complaints and feedback information, the company summarizes and analyzes customer complaints monthly, forming the "Customer Feedback Handling Statistics Table." Led by the Quality Control Department, various departments analyze common issues and formulate "Corrective and Preventive Measures" for improvement. The effectiveness of rectification is verified by the Quality Control Department, and the complaint handling process is tracked through telephone follow-ups to understand customer satisfaction.

　　Meanwhile, the company's After-sales Service Department and Quality Control Department regularly monitor customer complaint information, establish quality monitoring stations, centrally collect and analyze recurring issues in the market that affect customer satisfaction and product experience, and produce reports. Regular internal product quality meetings are organized. Quality circles and cross-departmental product quality improvement teams are formed, while also coordinating with upstream suppliers and related partners to tackle major product quality issues, eliminate quality risks, and enhance product quality satisfaction.

　　(3) Corporate Social Responsibility

　　As a leading enterprise in the IXPE manufacturing apparel field, the company actively fulfills social responsibility while creating social innovation value and fully supports public welfare. In fulfilling public responsibilities, civic duties, adhering to ethical standards, and protecting public health, safety, and the environment, the company analyzes the social impact of its production and business activities, proactively assumes responsibilities and obligations, and takes the lead in the industry by regularly publishing social responsibility reports to society.

　　1. Public Responsibility

　　During production, the company impacts society through factors such as dust, exhaust gas, and wastewater emissions, causing environmental pollution. Noise may also harm public health.

　　Therefore, the company implements relevant national laws and regulations including the "Environmental Protection Law," "Air Pollution Prevention and Control Law," "Water Pollution Prevention and Control Law," "Production Safety Law," and "Fire Protection Law." It establishes goals for pollution reduction and emission control, guided by the environmental policy of "energy saving and consumption reduction, orderly development, safety first, and prevention-oriented." A dedicated organization is set up for environmental management. Using the PDCA cycle, the company establishes an environmental management system by conducting environmental hazard analysis and risk assessment, implementing procedures for environmental factor identification and evaluation, environmental monitoring and measurement control, environmental conditions and facility management, infrastructure and work environment control, and an environmental management manual.

　　According to the company's established safety production standards, it strictly implements the safety prevention "three simultaneities" and the safety accident "no tolerance" goals, signs safety production responsibility agreements with workshop supervisors, establishes emergency response teams for safety accidents, and regularly conducts fire drills to achieve safety production objectives.

　　Based on the above measures, the company identifies four aspects: environmental protection, energy utilization, safety production, and public health. It determines related impact indicators and risk identification, and establishes measurement methods according to national standards.

　　Table 10 Public Responsibility Control Methods

Project	Control Elements	Risk Factors	Measures Taken
Comprehensive Utilization of Environmental Protection Resources	Solvents, wastewater, exhaust gas, waste silk, solid waste, noise	Water, air, soil pollution affecting community residents and employees	Company's steam exhaust gas reuse device. Abundant raw material sources and efficient resource utilization for products
Energy Consumption	Energy Conservation Law, Zhejiang Province energy consumption standards	Loss of water, electricity, steam, etc.	Procurement of energy-saving equipment, technical transformation projects, reclaimed water reuse system, formulation of energy-saving management system, establishment of energy consumption quotas, and regular inspections.
Safety Production	Fire, explosion, hazardous chemical leakage, poisoning and suffocation, burns and frostbite, electric shock, falls from height, vehicle injuries, object strikes, mechanical injuries	Occupational health hazards, casualties, environmental pollution, property loss, reputation damage, impact on social stability	Establish and improve the EHS management system; implement safety standardization; EHS training; hidden danger investigation and remediation; emergency plan formulation and drills; simplified production processes; regular occupational health check-ups and standardized use of labor protection equipment.
Product Safety and Public Health	Quality of raw and auxiliary materials, product packaging, dust	Poor product quality, damaged packaging materials, dust inhalation	Physical testing of products and raw materials; strict enforcement of labor protection equipment usage; annual evaluation of occupational hazard control effectiveness.

　　Company executives use external audit methods in strategic environmental analysis and leverage industry and network channels to conclude that product safety, environmental protection, energy consumption, safety production, and public health will have significant impacts on the company's future products and operations.

Table 11 Forecast and Response to Public Responsibility

Public Concerns	Description	Response Measures
Concerns about public health	Occurrence of public health incidents	Provision of sufficient protective equipment Physical examinations and vaccinations for relevant staff Formulation of emergency plans Strengthening internal medical management of the enterprise
Concerns about safety production	Safety accidents Occupational health hazards	Establishment of occupational health and safety management system Formulation of emergency plans
Concerns about quality and safety	Human health and safety	Promotion of clean production Application of new materials
Concerns about the company's production environmental protection	Pollution discharge, noise, energy consumption	Use of green resources Establishment of emergency plans

 

　　2. Ethics and Integrity

　　For a long time, the company's senior leadership has focused on the core values of the enterprise, placing great importance on cultivating corporate ethical culture during the implementation of corporate culture construction. They strive to create a good atmosphere that values moral cultivation, with senior leaders leading by example and all employees actively participating. The company has established and improved its management system based on national laws and regulations such as the "Company Law," "Accounting Law," and "Labor Law." Senior management strictly manages and leads by example, serving as models and benchmarks for compliance with laws and regulations. Since the company's establishment, no senior manager has violated laws or regulations.

　　The company has dedicated legal personnel and has established an audit department that conducts audits quarterly and legal and regulatory education monthly. It standardizes, guides, supervises, and controls the business conduct and transactions of various departments, operating in accordance with the law and enhancing professional compliance awareness.

　　Comply with social moral norms, operate with integrity, and abide by laws and regulations. Properly handle relationships with customers, investors, partners, banks, and society, emphasizing reputation, commitment, contracts, and credit, cooperating sincerely for mutual benefit and win-win outcomes.

　　The company has formulated strict codes of conduct, setting standards on how to maintain the company's values in work and communication with customers and other groups. The audit department is responsible for analyzing and handling violations, errors, and dereliction of duty, or proposing disciplinary suggestions, with the management committee making corresponding decisions. The company adopts a "zero tolerance" attitude toward commercial corruption, emphasizing the guiding, disciplinary, and regulatory functions of systems. It has successively formulated and issued systems such as the "Implementation Rules for Integrity Construction," "Sunshine Agreement for Outsourced Product Procurement," "Code of Conduct for Leading Cadres," and "Bidding Management Regulations." Employees and management are required to follow the highest standards of business ethics and comply with the laws and regulations of the countries or regions where the company operates to prevent potential risks related to ethical norms and compliance, set ethical examples, and promote continuous improvement in compliant operations.

　　The company emphasizes publicity and education against commercial bribery and internal unfair transactions, strengthening moral conduct education for employees ideologically. Corporate culture and ethical conduct, as well as employee behavior norms, are included in employee induction training. Through positive guidance and negative warnings, the company fosters an atmosphere of integrity and honesty, reminding employees that integrity construction is fundamental to the company's survival and that honest conduct guarantees personal career growth.

　　The company has established measurement methods and indicators for supervising ethical behavior.

　　Table 12 Measurement Methods and Indicators for Ethical Behavior Control

Organization	Monitoring Content	Supervisory Department	Measurement Indicators	Measurement Methods
Government, Society, Finance, Associations	Quality Credit Rating	Quality Supervision Bureau	Credit Level	GBT23791—2009 Enterprise Quality Credit Rating Classification Rules
	Contract-abiding and Credit-worthy Level	Administration for Industry and Commerce	Provincial AAA Level	Internal Definition Standards
	Tax Credit	Tax Bureau	Provincial AAA Level	Internal Definition Standards
	Creditworthy Enterprise for Loans	Financial Institutions	Provincial Demonstration	Internal Definition Standards
	Law-abiding and Honest Import and Export	Customs	Provincial Demonstration	Internal Definition Standards
	Industry AAA Credit Level	Industry Association	AAA Credit Level	Internal Definition Standards
Management Team	Corporate Governance Structure	Shareholders' Meeting	Company Regulations	Inspections, Meetings
	Fulfillment of Duties, Integrity	Board of Supervisors, All Employees	Illegal and Disciplinary Incidents	Complaints and Reports
Functional Departments	Compliance of Each Department Ethical Standards   Production and Business Activities Normativity	Tax Department	Lawful Tax Payment	Inspection and Evaluation
		Industry and Commerce Department	Integrity Management	Inspection and Evaluation
		Partners	100% Contract Fulfillment Rate	Contract Performance
		Bank	Timely Loan Repayment	Credit Evaluation
		Procurement Department	Integrity, Quality Assurance	Supervision, Complaints and Reports, Contract Performance
		Sales Department	Integrity, Fair Competition	Customer Visits, Complaints and Reports, Contract Performance
		Factory	Violations and Disciplinary Infractions	Inspection and Evaluation
	Fairness and Justice of Management Behavior	Employees	No Favoritism or Fraudulent Behavior	Employee Complaints
		Audit Department	No Violations	Internal and External Audits
Grassroots Employees	Daily Behavior Norms	Employees of Each Department	Elimination of Unethical Behavior	Inspections, Assessments

　　3. Public Welfare Support

　　Support public welfare and determine key support areas: The company's senior leadership, guided by a sense of responsibility to revitalize the local economy and give back to society, focuses on the core values of "creating value for customers, seeking development for employees, delivering returns to shareholders, and assuming social responsibility." Based on the company's development direction and strategic priorities, key support areas for public welfare include supporting local economic and industry development, education and cultural undertakings, public facility construction, environmental development, and charitable causes. The company actively and effectively carries out public welfare activities.

　　Table 13 Company Public Welfare Support Activities Content

Time	Project	Amount
20 Year 20	Fire brigade visits, scholarships, earthquake donations, funds, etc.	2 Ten thousand yuan
20 Year 21	Scholarships, funds, charity, etc.	3 Ten thousand yuan
202 Year 2	Scholarships, funds, charity, etc.	5 Ten thousand yuan